Good morning. I had my long order set at 6780 yesterday which with the spread on IG missed by 0.3. I know some other platforms hit it as they had slightly different prices. Anyway, the low was 6779.8 and we got the bounce as expected, hitting the 6822 level right on the bell, enabling the short for a few more after the close. Whilst the S&P dropped off the 2005 area, the FTSE has stayed quite buoyant around the 6815 area overnight. Todays pivot is 6808 so initial support there, and with the bottom of the 10 day Bianca at 6796 we might get a bit more bull yet, though resistance is 6829. Positive news out of the US yesterday with data on durable goods and consumer confidence, which helped the S&P stay above 2000. How much longer though?
Asia Overnight from Bloomberg
Asian stocks rose after U.S. data on durable goods and consumer confidence boosted optimism in the strength of the world’s largest economy.
The MSCI Asia Pacific Index (MXAP) gained 0.1 percent to 148.52 as of 12:32 p.m. in Hong Kong, with the gauge trading within 1 percent of a six-year high. More than $1.1 trillion has been added to the value of the world’s equities this month, with global shares now worth a record $66 trillion. Orders for U.S. durable goods jumped in July by the most on record, while American consumer confidence reached the highest level in almost seven years.
“The U.S. economy is progressively strengthening,” Matthew Sherwood, Sydney-based head of investment markets research at Perpetual Ltd., which manages about $29 billion, said in an e-mail. “Earnings expectations are not challenging, valuations are at average levels, buybacks are continuing and the Fed will maintain its highly supportive monetary policy. U.S. rates are set to remain extremely low for another two years at least.”
Regional Gauges
South Korea’s Kospi index added 0.2 percent and Taiwan’s Taiex index advanced 0.8 percent. New Zealand’s NZX 50 Index rose 0.7 percent. Singapore’s Straits Times Index and India’s S&P BSE Sensex Index both increased 0.5 percent. Australia’s S&P/ASX 200 Index increased 0.1 percent as Boral surged 4.5 percent to A$5.63. Japan’s Topix index slid 0.2 percent.
Hong Kong’s Hang Seng Index (HSI) was little changed while the Hang Seng China Enterprises Index of mainland Chinese firms traded in the city advanced 0.5 percent. The Shanghai Composite Index rose 0.2 percent. The MSCI Emerging Markets Index increased 0.4 percent after yesterday closing at a three-year high.
Futures on the Standard & Poor’s 500 Index were little changed today after the gauge yesterday closed above 2,000 for the first time.
The MSCI Asia Pacific Index traded at 13.7 times estimated earnings yesterday compared with 16.8 for the S&P 500 and 15.5 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
FTSE Outlook
The FTSE has held up pretty well overnight, despite the S&P dipping back from its high. Now that has broken the 2003 level, 2007 is the next one of interest, though i have read some (maybe a tad wild!) predictions of 2025 coming soon. Back to the FTSE and there is still decent 30 minute channel in play, and with the pivot suggesting support at 6808 initially we may see a bit of a climb from the off. Below the pivot then the bottom of the 10 day Bainca is 6796, then 6748 below that area. I am more inclined to think that the pivot area will hold (bottom of the channel is around 6800, hence the slightly wider stop. Might be worth a small long at the pivot at then add at 6797 in fact. If the bulls do charge again today then 6829 is the initial resistance, with 6854 and 6863 above that. We are ask nearing the top of the 20 day Bianca at 6876, which could tally with the S&P at 2007?